Group Dynamics Joining a trade association could set your business's agenda in motion.

As the first national U.S. standards for organic foods went intoeffect in October, Dave Alexander was thanking his lucky stars-andhis trade association. The Organic Trade Association (OTA), whichAlexander has belonged to for five years, spent more than a decadelobbying for the rules. The change is expected to lead to bigopportunities for small enterprises like Arlington,Massachusetts-based Global Organics Ltd., the seven-person organicfoods importer Alexander founded in 1992.

"A lot of big companies have been eyeballing the organicindustry but have been sitting on the sidelines because theydidn't feel comfortable with the fact that there wasn't anyfederal legislation," explains Alexander, 38. "Largelydue to the efforts of the Organic Trade Association, there nowis."

Tricks of the TradeGroup
Big companies hire their own lobbyists to influence legislators andregulators; small companies join trade associations. Smallcompanies also join trade groups for benefits such as networkingand low-cost health insurance, and to promote industry educationcampaigns.

There are more than 147,000 trade associations in the UnitedStates, according to the American Society of Association Executives(ASAE). Most are state or local groups. Others are national orinternational.

How can you decide whether to join an association and which oneto join? Start by asking what you hope to gain.

If you're looking primarily for local contacts, start withyour local chamber of commerce. Mary Skaggs, 36, president ofthree-person Alexander Christian Interiors in Lakewood Ranch,Florida, says joining her local chamber has produced manyreferrals. "That has done more for my business thananything," Skaggs says.

National associations are useful if you're looking forcertification, education, or to stay on top of industry trends.Skaggs joined the American Society of Interior Designers, aprofessional society for decorators so she could put the"ASID" after her name. "Having 'ASID' afteryour name lends a lot of credibility for people who don't knowyou," she says.

Many national associations publish newsletters, produce Websites and sponsor shows and conventions to help members stay on topof trends and contacts. Both local and national associationsprovide access to discounted products such as office supplies and awide array of services. Health insurance is one popular benefit.Alexander joined a small-business group specifically to getcoverage for his employees.

The Trade-Off
Once you've found what you're looking for, compare thecosts with the benefits. "Some of these trade association duesare a million dollars a year," notes Ray Towle, ASAE'svice president for member relations. Most are less costly;Alexander pays about $2,000 a year for his organic associationmembership. Other costs include the time you'll be away fromwork attending meetings. Time costs can skyrocket if you joincommittees or become an officer, Towle adds.

Of course, a trade association can't do whatever you want.Tax regulations, federal antitrust laws and their own bylaws mayrestrict trade groups from doing such things as providinginformation on other members' pricing practices or fromlobbying for individual laws or candidates. "People often wantus to promote their product or business," says the OTA'sKatherine DiMatteo. "We can't do that."